Converting an old office building into flexible workspace

We own a dated four-storey office building in a secondary city centre. Traditional long leases are getting harder to sign, while small companies ask for flexible terms and shared facilities. Converting two floors into serviced workspace could improve occupancy, but operating it is a different business.

We are comparing three paths: running it ourselves, partnering with an operator on a revenue share, or leasing the floors to an operator at a fixed rent. Fit-out costs, management effort and how lenders view the income all differ. If you made a similar conversion, which model gave you the best balance of risk and return?